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June 2010 Contents Company Overview Global Markets Future Strategy HEAVY INDUSTRIES Company Overview

· Business Highlights

· Risk Management

· Financial Results

· Construction Business

※ LNG Carrier & LNG FPSO

3 Business Highlights

Revenue 2009 Order backlog

Tankers Production (US$b) Construction 6% 16% Facility 16% Offshore 37% Containerships 25% Drilling Commercial Vessels LNG Carriers Rig 34% 57% 8% Ferries 1%

(KRWt) ※ As of May. 2010 Earnings per share and dividend Customer Base (KRW) (KRW) Major Ship Buyers 4000 700 Earnings per share Dividend Petrobras, Tanker Pacific, Cardif, 500 500 500 600 Production 3000 Stena, Mosvould, BP, FLEXLNG, 500 & Rig Vyborg, Statoil 400 2000 250 MSC, OOCL, CMA CGM, Offen, 300 Containerships 2899 2900 CSG, Zim Line, Seaspan, UASC 1000 2178 200 100 LNG Carriers QGTC, Chevron, AP Moller, BG 675 0 - Geden, Teekay, Finaval, Tankers 2006 2007 2008 2009 Andromeda

4 Risk Management

■ SHI focuses on minimizing profit volatility

Building Event Contract Steel cutting Keel laying Launching Delivery Time Gap (months) 26 4.5 2.5 3.0 Currency Receivables Payables Raw Materials Main Engine Machinery Steel Plate Bulk Parts : Hedging, order : Execution, delivery

 Foreign currency exposure has been fully covered through forward transactions since 2002  Main machinery including engine are ordered within 6 months of contract signing, while SHI has a buffer in bidding price against unexpected price hike for raw material like steel plate 5 Financial Results

■ Income statement (KRWb)

2009 2010 1Q 2Q 3Q 4Q Total 1Q

Sales 2,776 3,232 3,619 3,468 13,095 3,330

Shipbuilding 2,596 3,019 3,415 3,231 12,261 3,144 Construction 180 213 204 237 834 186

Operating profit 156 228 267 143 794 216 (Margin) (5.6%) (7.1%) (7.4%) (4.1%) (6.1%) (6.5%)

Pre-tax income 123 210 274 248 855 256

Non-OP income 5,801 1,727 -2,155 889 6,222 1,795 Non-OP expense 5,834 1,745 -2,162 744 6,161 1,755

Net income 102 153 222 193 670 200

6 Construction Business

■ Business overview ■ Main works

Revenue and profit (KRWb,%) Road Apartment 1,000 10.0% Revenue Operating Profit 800 8.0%

600 6.0%

400 4.0% Incineration plant Office building 200 2.0%

- 0.0% 2005 2006 2007 2008 2009 Order backlog

(KRWt,%) Town house Hotel Civil & Plant 34% Building & Housing 66%

※ As of end-December 2009 7 HEAVY INDUSTRIES Global Markets

· Shipbuilding Market

· Major Market Situations

· Offshore Oil Supply

· Drilling Rig Market

· LNG FPSO Market

※ Major products of SHI : Containership, LNG Carrier, Drillship and FPSO (clockwise from upper left)

8 Shipbuilding Market

Global new orders

(Mn. GT.) (YoY %) 180 18.0% LNG Carrier Containership 179 Tanker Bulker 160 Other Sea Trade AVG : 130 15.0% 140 World GDP AVG : 73 12.0% 120 116 108 April : 12 100 AVG : 36 9.0% 77 80 74 69 6.0% Neutral : 60 60 46 3.0% 35 40 40 30 31 25 0.0% 20

- -3.0% '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10(E)

 Global economic recovery and rapid growth of Chinese economy lead shipbuilding order  Regulation changes and need for substitution prompt a rush of new orders  Replacement orders for single-hull tankers and old bulk carriers enlarged total orders in 2006 to 2008

9 Major Market Situations

Freight index Scrapping (Mn. GT.) 24 25.0 WS B D I Others CCFI 20.0 Container 16 16 16 15 Tanker 15.0 13 Bulker 10 10.0 7.4 6 4 4 5.0 3

- 07/1/5 08/1/5 09/1/5 10/1/5 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10.4 Source: Clarkson Mechanism of maritime market Fleet to be scrapped (Mn. GT.) To be Fleet Remark Economy scrapped Scrap Bulk Carrier 232 70 (30%) Over 20 years

Trade Fleet Delivery Tanker 218 43 (20%) +20 yrs & S.H Containership 146 11 ( 7%) Over 20 years

Freight Order Backlog Total 596 124 (20%) Source: Clarkson

10 Offshore Oil Supply

■ Oil Production Forecasts ■ Offshore Development Process Replacement in oil production Deep water development period (mbpd) Source: IEA 80 73↑ 1.0% pa 70 75 2yr 3yr 3yr 1yr 60 24 42 Survey 40 oil recovery Total : 9yr to be found ↓ 6.7% pa Drilling 20 to be developed Sub-sea module current Preparation 0 2000 2007 2010 2015 2020 2030 Oil company capex plan Source: Company Data Oil production from new offshore field (US$b) (mbpd) Source: IEA 40 2008 2009 34.9 20 32.0 to be developed 17 18 31~32 30.5 25~30 to be found 30 26.1 15 14 20 10

5 10

0 0 2007 2015 2020 2030 Exxon Shell P-Bras 11 ※ Petrobras 2009 : 5year average Drilling Rig Market

Depth of exploration and production Strong points of drillship (Feet) 1965~ 1970~ 1975~ 1980~ 1985~ 1990~ 1995~ 2000~ 2005~ 0 Mobility 2000 Carrying 4000 Convenience capacity 6000

8000 Exploration 10000 Drillship Production 12000 Source: IEA Drilling rig M/S by delivery plans Deep water rig order forecasts

(No. of rigs) (No. of rigs) 25 Semi 12000ft Semi 10000ft 30 29 29 Drillship 12000ft Drillship 10000ft 21 26 Semi 20 18 18 4 10 Drillship 3 20 12 15 6 5 19 12 12~15 12 10~13 10 8 5 2~3 2~3 9 10 19 5 4 12 10 14 3 7 10 10~12 8~10 1 3 2 0 2 0 2 1 2008 2009 2010 2011 '05 '06 '07 '08 '09 '10 '11~15 Source: Rigzone Source: SHI 12 LNG FPSO Market

LNG FPSO Strong points of LNG FPSO

Liquefaction

Pre-treatment Mobility

Less Capex Reliability

LNG Natural gas FPSO

LNG FPSO target market LNG FPSO order forecast (No. of projects) 3~5 Conventional 4 Niche field field Large 1~2 3 Midium Small field Large field Target Field 2 (10~600mt) (600~6000mt) 2 4 1 2~3 Capacity ~2.5 mtpa 2.5~6.0 mtpa 1 1 1 Major oil Customer FPSO operators 0 producers '08 '09 '10 '11~15 Source: SHI 13 HEAVY INDUSTRIES Future Strategy

· Technological Leadership

· New Construction Method

· Wind Turbine Business

· Globalization Strategy

※ Sakhalin fixed platform built by SHI

14 Technological Leadership

Icebreaking Tanker Ice Drillship Ice Container

LNG FPSO LNG FSRU 16,000teu Container

 Growing environmental awareness creating eco-friendly product markets  Innovative technology and shrinking oil reserves are triggering new Arctic oil production era  Increasing demand for new products provides SHI with new business opportunities

15 New Construction Methods

■ Maximizing dock capability ■ Production process

(Block size) No. of blocks Dock time

Old method 100 blocks 60 days (300 tons)

Mega block ('01) Mega block assembly Floating crane lift 10 blocks 45 days (3,000 tons)

Giga block ('07) 6 blocks 30 days (5,000 tons)

Tera block ('08) 3 blocks 25 days (10,000 tons) (115,000톤 유조선 기준) Laying on F. dock Launching

Crude oil tanker: 115K

 Combining floating docks and cranes significantly reduces dock time and maximizes efficiency  New construction methods are the best way to satisfy growing market demand

16 Wind Turbine Business

■ Business opportunity ■ Business plan Economy of wind turbine Wind turbine structure 50 (USC/kWh) Nacelle Global Blade Drive train 40 US Gear box Generator 30 Japan 20 Korea 10 0 Wind Nuclear Thermal Solar Tower Source: Asia Pacific Energy Research Center

Demand forecast SHI’s potentials (GW) (US$b) 80 Others 93.2 100 Shipbuilding - Drive train designs China & Offshore - Quality management system 80 60 EU US 55.0 US$ 60 40 40.3 Digital control - Wind turbine controller 34.2 28.1 40 system - Data acquisition 20 20 Research - Aerodynamics & blade design 0 0 institute - Noise & Vibration reduction '10 '11 '12 '15 '20

Source: Emerging Energy Research

17 Globalization Strategy

■ Global base

Shipyard Moscow Overseas subsidiary Oslo Branch office London Rongcheng Athens Tokyo Houston Ningbo Houston Dubai Koje India Shipyard

Malaysia Singapore Brazil China Ningbo (Start :1997) Rongcheng (Start: 2007) block - 240,000 tons in 2008 - 56,000 tons in 2008 factory - 250,000 tons in 2010 - 300,000 tons in 2010 Offshore Houston India engineering - Production facility - Production facility center engineering design basic design Shipyard Brazil (Atlantico Shipyard) joint - Assets US$780m, Capital US$220m (SHI:10%) venture - Suezmax, VLCC, Semi Rig Hull  Global production and engineering bases enable SHI to meet ship buyers’ demands

18 Disclaimer

This presentation has been prepared by Samsung Heavy Industries Co., Ltd. and contains forward-looking statements, that are subject to risks, uncertainties, and assumptions. The presentation is solely for your information, subject to change without notice, and makes no representation or warranty, expressed or implied and no reliability should be placed on the accuracy, fairness, or completeness of the information presented herein. The Company, its affiliates or representatives accept no liability for any losses arising from any information contained in the presentation. The contents of this presentation may not be reproduced, redistributed or circulated, directly or indirectly, to any other person or organization, or published, in whole or in part, for any purpose.